UAE could boost output to 3.5 million bpd

United Arab Emirates Energy Minister, Mohamed bin Dhaen Al Hamli, has said that within a year the UAE will increase its oil output by an extra 200,000 barrels per day (bpd) from today’s production of a little over 2.5 million (bpd).

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By  Nicholas Wilson Published  December 1, 2005

United Arab Emirates Energy Minister, Mohamed bin Dhaen Al Hamli, has said that within a year the UAE will increase its oil output by an extra 200,000 barrels per day (bpd) from today’s production of a little over 2.5 million (bpd). Speaking at the International Energy Agency’s Abu Dhabi presentation, Al Hamli also said the UAE would increase its oil production capacity to more than 3.5 million bpd in the next few years through investments in upstream projects. It is ramping up investment and production in both downstream and upstream, he added. The cause of the current oil prices is not lack of output, however, Al Hamli said, which is due to “speculation, market fears of missing spare capacity, instability in some oil producing countries, and supply chain bottlenecks, especially in refining”. “Producing and consuming countries need to work together on refineries. Serious steps are needed to achieve stability in world markets, but a lack of crude is not the problem. It is evident that the market is well supplied with oil. Stocks are higher in consuming nations than in recent years,” and the Middle East can meet world demand, he said. Fatih Birol, IEA chief economist , said the UAE’s policies are “an impressive example to many countries.”

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